Dunkin' Brands Group, Inc. DNKN has entered into a multi-unit store development agreement with franchise group Berliner III, LLC. Per the deal, the parties would open 16 new restaurants – 14 in St. Louis and two in Kansas City – over the next few years.
The first Dunkin' Donuts restaurant under this new agreement is expected to open next year while the rest are anticipated to open by 2023.
Berliner III, led by former NFL players, has been associated with Dunkin since 2011 when it signed the first restaurant development agreement with the company. The franchise currently operates Dunkin' Donuts restaurants in North Kansas City, MO., Omaha, NE and Council Bluffs, IA.
Dunkin’ remains focused on its franchise model as this facilitates growth without putting an unnecessary burden on capital requirements. The company offers special development initiatives like reduced royalty fees for three years and marketing support for timely opening of stores in order to boost growth.
Dunkin’ also offers distinct design options for its franchisees, providing variations in layout, color schemes, graphics, textures, furniture and/or lighting. The franchisees are allowed to select individual elements from any of the options that reflect their personal preferences and are suited to the specific restaurant size and location.
Dunkin' Brands currently carries a Zacks Rank #3 (Hold).
Meanwhile, other restaurant chains that are cashing in on the benefits of franchising and may be a better pick now are Jack in the Box Inc. JACK, McDonald's Corp. MCD and The Wendy's Company WEN. While Jack in the Box sports a Zacks Rank #1 (Strong Buy), McDonald's and Wendy's hold a Zacks Rank #2 (Buy).
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